Practice Purpose - 17.3.1 | 17. Final Accounts (Trading, Profit & Loss Account and Balance Sheet) | Management 1 (Organizational Behaviour/Finance & Accounting)
K12 Students

Academics

AI-Powered learning for Grades 8–12, aligned with major Indian and international curricula.

Professionals

Professional Courses

Industry-relevant training in Business, Technology, and Design to help professionals and graduates upskill for real-world careers.

Games

Interactive Games

Fun, engaging games to boost memory, math fluency, typing speed, and English skills—perfect for learners of all ages.

Typing
Memory
Math
English Adventures
Knowledge

17.3.1 - Purpose

Enroll to start learning

You’ve not yet enrolled in this course. Please enroll for free to listen to audio lessons, classroom podcasts and take practice test.

Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is the purpose of the Trading Account?

💡 Hint: Think about what the Trading Account summarizes.

Question 2

Easy

Name one component of the Trading Account.

💡 Hint: What goes on the debit or credit side?

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

What is the primary purpose of the Trading Account?

  • To calculate taxes
  • To determine gross profit or loss
  • To assess liabilities

💡 Hint: Consider what part of financial reporting focuses on income and expenses.

Question 2

True or False: Direct expenses affect the gross profit calculation.

  • True
  • False

💡 Hint: Think about what is included in the cost of goods sold.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A business has sales of ₹800,000. The opening stock is ₹100,000, purchases are ₹600,000, and closing stock is ₹200,000. Calculate the gross profit and discuss how this information might influence business decisions.

💡 Hint: Revisit formulas to ensure your calculations are precise.

Question 2

If a company has a gross profit of ₹540,000 and total direct expenses of ₹200,000, calculate the net sales and explain its implications for the company's financial strategies.

💡 Hint: Think about the relationship between expenses and profits.

Challenge and get performance evaluation